Public Spend is about a US$ 28 trillion market globally. Oliver Wyman estimates that out of that figure, procurement public spend corresponds to roughly US$8.5 trillion. Whether in advanced or developing economies, governments are facing increasing pressure to achieve more with less.
Instead of simply raising more taxes to harness the public deficit, more efficient procurement spend has become the imperative. In certain cases, countries could rationalize their spend by between 7 percent and 35 percent, depending on the country. This could yield average savings of approximately US$1.4trillion globally in a ceteris paribus scenario. To achieve this, governments must radically rethink their approach to procurement.
How can governments make their procurement spend more lean and efficient? Based on studies and knowledge gathered through practical experience, Oliver Wyman has put together a list of 12 rules to tackle this question.
Source: IFS, IMF, WB, OECD, Oliver Wyman analysis
Andre Martins
Laurent Guerry
